You are looking to invest in one of three stocks. All other things being equal, Stock A has high expected earnings growth, stock

Question

3 years ago

8

You are looking to invest in one of three stocks. All other things being equal, Stock A has high expected earnings growth, stock

B has only modest expected earnings growth, and stock C is expected to generate poor earnings growth. According to LaPorta's 1996 study, which stock is likely to generate the greatest alpha for you?

Business

1 answer:

WINSTONCH [101] · Answer 1 · 2022-08-29T12:54:32+03:00

Answer:

Stock C is correct answer

Explanation:

According to the investigation of LaPorta's 1996 study Stock expected to have poor earnings growth has the greatest alpha. Unlike, the option stock A and option stock B with modest and higher earnings growth.

Corrct Answer: Stock C.